Telx Group Inc., The -- Moody's changes Telx's outlook to negative following dividend recap

New York, March 28, 2014 -- Moody's Investors Service ("Moody's") has changed the outlook of The Telx Group, Inc. ("Telx" or "the company") to negative from stable following Telx's announcement that it plans to issue incremental debt to fund a distribution to its equity sponsors. Moody's has affirmed the company's B3 corporate family rating (CFR) and B3-PD probability of default rating (PDR)and assigned B1 (LGD3-30%) ratings to the proposed $110 million senior secured first lien revolver due 2018 and $450 million senior secured first lien term loan due 2019 and a Caa1 (LGD5-78%) rating to the proposed $185 million senior secured 2nd lien term loan due 2020. The proceeds from the new credit facilities along with $78 million of unrated holding company notes will be used to pay down existing debt and fund a $150 million dividend to the company's equity sponsors.

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